Synergy
Combined effect greater than sum of parts.
Formula
Synergy Value = Combined Business Value − Sum of Individual Values
Real World
When Disney acquired Pixar in 2006, the deal created synergy: Disney's global distribution network combined with Pixar's animation talent produced franchise hits like Toy Story 3, generating far more revenue than either could alone.
Exam Focus
Distinguish cost synergies (cutting duplication) from revenue synergies (cross-selling) — examiners reward precise terminology.
How well did you know this?